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    Are 529 Plans Really the Best Way to Save for College?
    Are 529 Plans Really the Best Way to Save for College?
    Are 529 Plans Really the Best Way to Save for College?
    Ebook58 pages30 minutes

    Are 529 Plans Really the Best Way to Save for College?

    By Dale Maley

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    About this ebook

    Before the advent of 529 plans, UGMA accounts were the principal method of saving for college. When state administered 529 plans were created by Congress in 1996, conventional wisdom said they were the new preferred method for college savings. Now many states are perilously close to bankruptcy and are charging high fees for 529 plans. Nine states have closed the pre-paid tuition plans. It is time to revisit the question of 529 plans versus UGMA accounts. This short story explores the issue of whether 529 plans or UGMA accounts are the best method of saving for college. After reading this short story, you will be able to make your own well-informed decision on the best method of saving for college.

    LanguageEnglish
    PublisherDale Maley
    Release dateApr 15, 2011
    ISBN9781458066664
    Are 529 Plans Really the Best Way to Save for College?
    Author

    Dale Maley

    Dale C. Maley is the author of the 19999 book Index Mutual Funds: How to Simplify Your Financial Life and Beat the Pros. He is also a contributing author to Chapter 18 Seeking Help from Professionals in the 2009 book The Bogleheads Guide to Retirement Planning. He is a very successful private investor who has been a student of Financial Planning and Investing for over 30 years. He was trained as an engineer at the University of Illinois and has been a practicing engineer for 32 years. His accomplishments as an engineer include the granting of 16 U.S. Patents and authorship of over 500 professional technical papers. He is also a member of the International Society of Automotive Engineers and the Society of Manufacturing Engineers. He also has earned an MBA (Masters Degree in Business Administration) degree from Illinois State University. His background in mathematics, engineering, and business provides him with the excellent basis for understanding and teaching investments and financial planning. He is also a very successful investor who has been investing in common stocks and mutual funds since 1980. He has also personally invested in both 401(K) and IRA plans, so he is familiar with participation and management of these types of investments. He has been investing in indexed common stock mutual funds since 1990. Dale became a Registered Financial Advisor in the State of Illinois in 2006 and is currently launching his business as a fee-only financial planner. He is President of Maley Financial Planning LLC.

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      Book preview

      Are 529 Plans Really the Best Way to Save for College? - Dale Maley

      Are 529 Plans Really the best way to save for college?

      by

      Dale C. Maley

      SMASHWORDS EDITION

      * * * * *

      PUBLISHED BY:

      Artephius Publishing on Smashwords

      Are 529 Plans Really the Best Way to Save for College?

      Copyright © 2011 by Dale C. Maley

      All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise) without the prior written permission of both the copyright owner and the above publisher of this book.

      *****

      Table of Contents

      Chapter 1

      The Ever Increasing Cost of College

      Chapter 2

      Definition of UGMA Accounts

      Chapter 3

      529 Plans

      Chapter 4

      New Risks for 529 Plans

      Chapter 5

      Stafford Loans

      Chapter 6

      Financial Models for College Funding Alternatives

      Chapter 7

      Parent Taxable Account Option

      Chapter 8

      UGMA Option

      Chapter 9

      529 Savings Plan

      Chapter 10

      Combination of 529 Savings Plan and 529 Pre-Paid Tuition Plan

      Chapter 11

      Comparison of College Funding Alternatives

      Chapter 12

      Conclusions

      Chapter 13

      Summary

      References

      Recommended Reading

      Web Sites

      * * * * *

      Warning-Disclaimer

      This book is designed to provide information in regard to the subject matter covered. It is sold with the understanding that the publisher and author are not engaged in rendering legal, accounting, insurance, or other professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

      It is not the purpose of this manual to reprint all the information that is otherwise available to the author and/or publisher, but to complement, amplify, and supplement other texts. You are urged to read all the available material, learn as much as possible about investing and to tailor the information to your individual needs.

      Every effort has been made to make this book as complete and as accurate as possible. However, there may be mistakes both typographical and in content. Therefore, this text should be used only as a general guide and not as the ultimate of investing information. Furthermore, this book contains information on investing only up to the printing date.

      The purpose of this book is to educate and entertain. The author and the publisher shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to be caused, directly or indirectly by the information contained in this book.

      * * * * *

      Foreword

      Before

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